credit line

Yes, essentially a line of credit is indeed a bank account.

You earn interest on the money in your line of credit and the money can be withdrawn.

Best of all, you only pay interest on the funds you withdraw, not on the entire balance.

Line of credit growth should not be confused as interest. Interest would assume it is "free money". Line of credit growth is an increase in your line of credit, which is still a WONDERFUL thing. HECM lines of credit grow at a half percent over the loans current interest rate. (today 3/6/08 it is at 3.73%) Line of credit growth is tax free, interest is not.

At Financial Freedom, your line of credit is accessed by filling out a withdrawal form, and either mailing or faxing it in. The proceeds of the withdrawal will then be directly deposited into your bank account, or a check will be mailed to you. The process takes a few days. Like a credit card, you are given a "limit", and can draw from that amount any time that is convenient to you, as often or as seldom as you wish.

I am a Reverse Mortgage Specialist employed by Financial Freedom, a preferred lender here at New Retirement. Should you have any other questions, I would be happy to answer them.

tfield @ financialfreedom.com
877-632-7890

Tam :)